Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The payback rule is useful in cases where the cost of making an incorrect decision might not be large enough to justify the time required for calculating the NPV.
• B)The payback rule is reliable because it considers the time value of money and depends on the cost of capital.
• C)For most investment opportunities,expenses occur initially and cash is received later.
• D)Fifty percent of firms surveyed reported using the payback rule for making decisions.

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Definitions:

Ethical Behavior

Ethical behavior relates to actions that are consistent with what society and individuals typically think are good values, involving honesty, fairness, and integrity.

American Psychological Association

The leading scientific and professional organization representing psychology in the United States, with the aim to advance and disseminate psychological knowledge for the betterment of people.

Obedience Studies

Research in psychology that examines how people comply with orders from authority figures, often associated with experiments by Stanley Milgram.

Ethical Guidelines

Standards of behavior and professional conduct expected in specific fields or professions, aimed at ensuring integrity and ethical behavior.